Back to the drawing board for Shell Centre redevelopment

The companies said that the decision to terminate the agreement, which was signed in 2002, was mutual, as the strategic priorities of each partner had changed.

The partners had drawn up plans to develop the ground floors of the existing Shell Centre buildings and the adjoining land in the Shell Centre complex.

Arup Associates designed the Belvedere Court scheme for shopping, dining, leisure and 300,000 sq ft of offices. First announced in 2001, it was originally due to be completed by Autumn 2004.

The Times also reports that Shell has held talks with Land Securities, already a major property player in SE1, about becoming involved in the project, but no agreement has been made.

Shell told The Times that it was committed to the project in the medium term. The company denied that the end of the joint venture meant the Shell Centre would be sold after the consolidation of the group's headquarters in The Hague.

More than 3,000 Shell staff are based in the oil company's South Bank buildings.

• Planning permission for the scheme, which was subject to a planning inquiry, expires in 2009.